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Virgin's results 'best ever' as customers spend more

Virgin Media added more customers and got them spending more, helping its results beat expectations.

By Nicole Kobie, 29 Oct 2009 at 09:16

Virgin Media not only added 200,000 subscribers over the last quarter, it found a way to get its customers to spend more, too.

Calling its third quarter results its "best ever financial performance", Virgin Media reported a five per cent increase in average revenue per user (ARPU) to £44.24, marking its second record quarterly increase in a row.

Virgin said mobile contract sales were up 51 per cent on-year, with 88,000 signing up in the last quarter.

The firm posted £953 million in revenue, up from £941 million in the same quarter of last year. It posted £348 million in operating cash flow - which is income before depreciation and other charges - and £50 million in operating income, down by £3 million from last year.

Virgin Media’s chief executive officer, Neil Berkett, said in a statement: “I am pleased to report that this quarter’s results delivered a strong OCF performance. I believe this demonstrates the success we have had in significantly differentiating and monetising our compelling consumer proposition."

He added: "Our focus remains on attracting high value customers, who buy more from us and stay with us longer. This strategy has led to the second successive quarter of record ARPU and strong consumer revenue growth. I am delighted that these results show we are progressing significantly in this regard."

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2 comments

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bunyuan190

I have been using this company from its CableTel days when they laid the cable past my house.
In recent years the service has been outstanding for speed and reliability. I see none of the brash advertizing of Sky and hope that Virgin Media continue to grow and make profits.
In this area, the BT-based internet is crawling compared with Virgin. The one improvement that I would like is to see Virgin match the free 0845 and 0870 dialling that BT offers in their call packages.

By bunyuan190 on Friday Oct 30

A more realistic view

@bunyuan190: You don't happen to work for Branson do you? I, too, have been with the various cable companies since inception until this month, when I cancelled the service. Why? Various reasons -- On the Virgin website we are told that we don't need a BT line, thus saving £11.25, but in a much smaller font at the bottom we see that a Virgin phone line costs an extra £11.00, and this is essential to get the best deals. I don't have a Virgin phone line (I use VoIP)and to call Virgin support when the cable modem fails (a fairly regular occurrence in my experience) one is forced to use a premium rate number. The operative at the other end then keeps you on the line, seemingly, for as long as possible. Once with Virgin, of course, there is no competition; at least with a BT line there is a huge range of broadband suppliers in competition with each other. "I see none of the brash advertising of Sky..." You've got to be joking; when Virgin reversed into NTL my TV screen was constantly filled with the most appalling sexist advertisements for Virgin Media. It made me cringe. Finally, a BT line with broadband from a decent supplier is still cheaper than Virgin. One may not have the upper speed levels available that are offered by Virgin, but these are expensive and unnecessary for most people.

By 6tricky9 on Saturday Oct 31